Travel insurance companies typically offer three different levels of coverage: Emergency medical, trip protection and a comprehensive or inclusive plan that combines both.
Emergency Medical Travel Insurance
Emergency medical travel insurance protects you if you get sick or injured during your trip. Without medical insurance, you could be stuck paying out hundreds of thousands of dollars. This coverage includes:
Travel Medical Insurance For Emergencies
Whether you’re canoeing in Argentina or taking a safari trip in Zambia, a medical emergency can certainly put a big dent in your travel mojo. It can also put a big dent in your budget.
Most provincial health plans offer little to no coverage outside the country. That means you have to pay for your medical care if you get injured or become ill during your trip—and if you think it’s not likely, or that it’s not a big deal, think again.
Snowbird Advisor Insurance shares the example of a 78-year-old man who was admitted to a Florida hospital with chest pain. He was diagnosed with three severe heart blocks that required surgery. His medical claim: $312,714.97. Then there’s a woman in Florida who was treated for food poisoning at a cost of $5,699.68. And finally, a 77-year-old Canadian woman in Mexico who fell down the stairs and needed surgery for a fractured knee. Without medical insurance, she would have been out $79,687.56.
Travel medical insurance covers costs for doctor and hospital bills, ambulance service, medicine, X-rays and lab work, up to the limits in your policy. Common policy limits are $5 million and $10 million.
Medical Evacuation Travel Insurance
Imagine needing to be airlifted off a mountainside in Switzerland after a hiking mishap, or requiring a flight off a cruise in Jamaica after suffering a stroke.
It can cost an estimated $15,000 USD to $200,000 USD to be transported by helicopter or ambulance to a nearby health care facility for the treatment of an injury or illness somewhere in the world, according to Allianz Travel Insurance. That does not include the cost of the treatment itself.
Medical evacuation travel insurance covers the expense of being taken to the closest overseas health care facility that’s equipped to treat you, and it may also pay for you to be flown back home if you need advanced medical attention. Along with medical evacuation, this coverage pays for repatriation, or transfer, of a traveler’s remains to Canada.
This coverage may be included as part of your emergency medical insurance or there may be a separate limit under your policy. For example, World Nomads offers $500,000 coverage for medical evacuation and repatriation.
It’s important to note that some tour operators and cruises require this coverage. For example, travelers booked with Adventure Canada require a minimum of $500,000 USD coverage per person.
Emergency Dental and Other Medical Coverage
Your medical insurance may also offer coverage for dental emergencies. For example, Blue Cross offers up to $2,000 for a dental accident (I have a broken jaw) and up to $500 for dental treatment, like if you suffer an infected tooth. Most plans will also offer coverage for other professional services, such as a physiotherapist, chiropodist or osteopath. Limits will vary; for example, Blue Cross offers up to $400 per profession while BMO Travel Insurance offers up to $150 per discipline.
Trip Protection Travel Insurance
Trip protection insurance compensates you for trip costs due to unforeseen events before and during your trip. This may include:
Trip Cancellation Travel Insurance
Before you’re even able to finish packing your sunscreen and swimsuits, an unforeseen circumstance could force cancellation of your trip—for example, if a tour operator goes out of business, you become ill or a family member dies. Travel insurance that includes trip cancellation coverage will refund the pre-paid, non-refundable costs of your trip in these kinds of situations.
“Cancel For Any Reason” Travel Insurance
Note that you can make a claim using trip cancellation coverage only if your reason for canceling is listed in the policy as an acceptable reason, such as your travel visa didn’t arrive in time or your business meeting was cancelled. To broaden cancellation coverage, some insurers offer an add-on known as “Cancel For Any Reason” travel insurance (CFAR).
CFAR coverage lets you cancel a trip for any reason and receive partial reimbursement. Each plan has its own rules and reimbursement rates. For example, if you have CFAR coverage with your CAA Trip Cancellation and Insurance Plan, you can cancel up to three hours before departure and receive 50% reimbursement. The cost of CFAR coverage will up your insurance premium significantly.
Trip Interruption Insurance
While trip cancellation insurance provides coverage before your departure, trip interruption insurance kicks in once you’re already on your trip and you have to return home sooner or later than planned. This coverage reimburses you for non-refundable and non-transferable portions of your unused and prepaid travel arrangements up to the sums insured. Each policy provider will stipulate what reasons are covered if you have to end your trip suddenly, such as a family member develops an unexpected medical emergency or a natural disaster hits your home. Trip interruption insurance also covers travel delays due to transportation issues, such as a missed connection due to a plane’s mechanical issue.
Travel Delay Insurance
Travel delays are a headache for many travelers. A policy with travel delay insurance can reimburse restaurant and hotel expenses when a flight is delayed due to a reason listed in your policy, for example bad weather or a mechanical problem. The daily amount of coverage usually ranges from $150 to $250.
Baggage Insurance
If your luggage is lost, stolen or damaged during a trip, a travel insurance policy with baggage insurance can reimburse you.
Baggage insurance also extends to your personal possessions, so if your backpack gets stolen, you can file a claim. Be aware that baggage insurance compensates you for the depreciated value of your belongings and not the amount to replace your stuff with new items. Also, there are exclusions and caps on certain items.
In addition, some travel insurance plans cover baggage delays. This coverage can pay for items you need to buy, such as clothing and toiletries, to tide you over while you’re waiting for your luggage to catch up with you. Note that baggage delay benefits come with a specified waiting time before benefits apply.
For example, Manulife Travel Insurance offers up to $500 for necessary toiletries when your luggage is delayed by 10 or more hours and up to $300 for any item, or set of items, to a maximum of $1,000 per trip.
Your insurer may also offer coverage if your travel documents get lost or stolen. For example, the Explorer plan with World Nomads will cover up to $1,000 in replacement costs if your passport, driver’s license, birth certificate or travel visa is stolen or lost during your trip.
All in all, travel insurance is a small cost relative to the trip costs you can protect—especially when traveling uncertainties and surprises abound.
